Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
. S. }, n0 v4 b% D3 A0 l* h% K& n7 Vexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
0 D' _, m( p! V( _these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
0 z# v, Z/ J6 A, f* C) a' L+ kEXXON, BG, BP, Cheveron ....xyz.. oils
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* H  P, w# _: uRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
( P3 S- f: W9 _least $50.00 per barrel. Today, oil price declined by a record amount.

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, ]3 o# [$ ^6 pThere are several reasons the price of oil is decreasing in the face
5 b0 X  D. Z5 ~' [3 T- cof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
2 K* E4 j) p+ y0 S- [in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
, P; k7 E+ H- g6 E2 z5 c( OThis is the largest find in North America.
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* k" r3 c" p5 a5 w# k4 Q3. New methods of injecting CO2 and surfactants into oil wells is
! B5 P7 [$ X5 L0 I* ^" ibeing used to double their output.
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4 r$ ~, d( l* ~- ]6 `8 s7 v+ h* o4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
0 a% h' j- Y& d! z" ~potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
, {) U7 `$ U; e4 j7 Q" F3 gcattle, turkey and chicken processing plant will soon sell their fat
, F2 }+ ?. o5 L0 xto bio-diesel producers. One pork processing plant in Oklahoma is
$ q; e. F6 e) @+ H. u) y, @producing 30,000 gallons of bio-diesel per day from pork fat.
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: V0 U1 R! e+ {3 p) ]  Z' A6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


# ?) m: q, }+ ?. }. h4 i( D7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
& @4 C) y0 L3 W0 o7 L7 _8 h: hare experiencing 20% to 25% better fuel econony with the new
3 L+ Z  L% Y3 \3 Iequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
/ T+ z! \8 j3 f* t  M  u6 g7 bcapture methane gas from landfills. This is a huge source of gas
3 k) B1 N/ Y4 P# i9 p+ a( q7 Davailable at very little cost or risk. The gas is displacing crude
: t' D' ^6 E$ }' Aoil.


/ \& S+ T# Z% Z7 a9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
$ o  V1 [+ p# Hoil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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1 x: s# c2 B) l* m3 y+ AEach of the above by itself will not make a large difference in the
8 ?% z, a" n7 T0 j7 z; |price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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# L; B9 v6 _; a# s. GWith the above scenario, I still believe that there are under
9 C4 r3 d0 u0 T" Y4 d. N8 s- j: Uperformed OIL companies and probably they are yet to get the justified
# t5 [  n+ Y$ j: d7 fvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
! h2 Y# S' L( Y% I" Q2009 ... FYI-Only